Gold prices fall as geopolitical tensions ease; U.S. CPI looms
* U.S. job data shows unexpected strength, calms recession
fears
* China Nov exports fall; import growth may signal demand
recovery
* Oil near multi-month high as OPEC+ agrees on deeper output
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tomo Uetake
SYDNEY, Dec 9 (Reuters) - Asian stocks edged up on Monday,
catching some of Wall Street's momentum after surprisingly
strong U.S. jobs data although regional gains were capped by
concerns about China's economy due to the prolonged Sino-U.S.
trade war.
Japan's benchmark Nikkei .N225 advanced 0.3% while MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.3%, with Australian stocks .AXJO and
South Korea's Kospi .KS11 up 0.2% and 0.6%, respectively.
The modest Asian gains compared with Wall Street, which rose
to near record highs on Friday on a strong jobs report and some
sign of optimism about U.S.-China trade talks, with the
benchmark S&P 500 .SPX closing within 0.2% of its peak set in
late November. .N/C
U.S. job growth increased by the most in 10 months in
November as the healthcare industry boosted hiring and
production workers at General Motors returned to work after a
strike, in the strongest sign that the economy is in no danger
of stalling. "This economy is still climbing and shattering the records
for longevity," said Chris Rupkey, chief financial economist at
MUFG Union Bank. "Right now, the clouds of recession still
remain well offshore despite troubled economies elsewhere in the
world and a trade war."
Top White House economic adviser Larry Kudlow said on Friday
that a Dec. 15 deadline is still in place to impose a new round
of U.S. tariffs on Chinese consumer goods, but President Donald
Trump likes where trade talks with China are going. Still, investors think things could change if trade tensions
escalate further, especially if Trump goes ahead with planned
tariffs on some $156 billion worth products from China from
mid-December.
The market has been largely working on the assumption that
those tariffs, which cover several consumer products such as
cellphones and toys, will be dropped or at least postponed,
given that Washington and Beijing agreed in October to work on a
trade deal.
Meanwhile, China's exports shrank for the fourth consecutive
month in November, underscoring persistent pressures on
manufacturers from the prolonged trade war, although growth in
imports may be a sign that Beijing's stimulus efforts are
working.
U.S. Treasury yields climbed after the strong employment
report, with benchmark 10-year notes rising to 1.843%
The Fed's Open Market Committee (FOMC) kicks off its two-day
policy meeting on Tuesday. The central bank is expected to
highlight the economy's resilience and keep interest rates on
hold in the range of 1.50% to 1.75%. Analysts said Friday's much better-than-expected jobs report
offset mixed signals from recent economic data and validated the
Federal Reserve's wait-and-see stance on interest rates after
three "insurance cuts" this year.
Oil prices retreated but hovered near recent peaks after
OPEC and its allies agreed to deepen output cuts by 500,000
barrels per day in early 2020. U.S. West Texas Intermediate (WTI) crude CLc1 slipped 0.4%
to $58.94 per barrel, still not far from Friday's 2 1/2-month
high of $59.85 per barrel.
In the currency market, the dollar maintained a firm tone on
Monday, with the dollar index against a basket of major
currencies =USD standing at 97.691 and the euro changing hands
at $1.1058 EUR= , both little changed on the day.
Against the Japanese yen, the dollar was last traded at
108.59 yen JPY= , flat on the day.